Unresolved tensions between the U.S. and North Korea are still very much on the table and can boost gold prices even further, according to a recent Capital Economics report.

“Until there is some certainty as to how the current situation between the U.S. and North Korea will evolve, we think that gold prices are likely to remain well supported and could even rise above $1,350 per ounce, which hasn’t been breached since the Brexit referendum last year,” Simona Gambarini, the U.K.-based research firm’s commodity economist, said Tuesday.

Yet, if the conflict should ever develop into “a full-blown war,” then gold will likely see “some profit-taking,” Gambarini added.

And, in case the U.S.-North Korea conflict simply fizzles out, the focus will shift to the Federal Reserve and its plans to reduce its balance sheet and tighten monetary policy further.

“If Trump’s threats prove to be nothing more than inflammatory rhetoric – as on previous occasions – we would not be surprised to see the gold price retreat as the focus of investors returns to Fed tightening,” the research note said.

In general, increased geopolitical risk in recent years have supported commodities like gold, as the yellow metal offers “the best protection for investors,” Gambarini said. “Over the past 40 odd years, military conflicts – particularly those involving the U.S. – have on average been associated with the largest gains.”